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EDC Minutes June 20, 2003 Page 2 including transportation, joint and several liability reform, and fiscal policy. Priorities were considered for 2004 D. Report of Staff: 1. Developer Activities—Community Dev. Group (Amoco Site): Backman has discussed the project with Steve Alexander with Community Development Group who is based in Michigan. During the past month, CDG rented office space in the Twin Cities and has hired Steve Mangold from the Velmeer Companies to be the local point person for the developer, Community Development Group. He is taking over for Steve Alexander, though Alexander will still be involved in the Amoco site redevelopment in Mounds View. Not a lot a progress in the Purchase Agreement to report. The negotiations between CDG and BP Amoco continue to drag on. Field asked if the City could take steps to push or motivate Amoco to conclude the negotiations. Backman responded that he had asked Mayor Linke the same question. The Mayor’s preference is to let Amoco and CDG negotiate and not get between the two sides at this time. There do not appear to be any punitive actions that can be taken. 2. Update of County Rd. H2 Residential Project: A lot of activities occurred over the past month regarding this proposed project. Backman discussed his presentation to the Planning Commission on May 21st. The Commission reviewed the concept plans submitted by three developers, Dave Regel Construction, Homes by James, and Pro Craft Homes, who were present to answer questions. The Planning Commission viewed all the concept plans as appropriate and ones that would be positive for the City. They encouraged the City Council to consider all three developers. Backman also mentioned to the P.C. that acquisition of one of the lots along Co. Road H2 would come before them. Currently the City owns three lots and has a use deed on a fourth lot. The use deed with Ramsey County allows for utilities or a park, but not streets or homes. To control the area for development it would be better to own the 1.5 acre lot. The acquisition cost would be $68,901.14. On May 27th Backman went before the EDA to present the concept plans. The EDA was pleased with the quality of the three housing developers and asked Backman to come up with developer criteria in order to make a decision. Backman reviewed with the EDC the developer responses to the criteria used by the EDA to select the developer. Two of the three developers responded by the June 5th deadline—Homes by James and Pro Craft Homes. Dave Regel decided that the “numbers” did not work for him and chose not to respond. Fox asked how many homes would be built and Backman indicated approximately 18 to 21 units. Entsminger inquired whether the Developer would be marketing the homes. Backman replied that both developer teams have marketing partners to sell the units (Norcrest Realty and RE/MAX respectively). One June 9th Backman presented the responses to the EDA and Pro Craft Homes was selected to be the developer of this residential development. The Pro Craft team has already sent an introductory letter to all residences on the block, and begun individual meetings with homeowners to explain the project. Backman has been responding to residents that have concerns. On June 4th Backman requested that the Planning Commission to recommend approval of purchasing the lot on Co. Road H2. After review, the P.C. unanimously recommended to the City Council the acquisition of Lot 36. Chairman Belting asked when the acquisition would be brought before the City Council. Backman replied that he would like to see the results of the soil borings and have a Letter of Intent developed before bringing the matter to the City Council. Belting expressed that he is excited about the project and feels that it will be boost to the City’s tax base. On June 9th the City Council also selected Twin City Testing (the low bidder) to undertake the soil borings on Mr. Fyksen’s and the City’s property. Three borings will be done on Fyksen’s land and six borings on the municipal lots. The cost will be pro-rated between the parties.